Deputy President Rigathi Gachagua has announced that the ongoing reforms in Kenya’s coffee sub-sector are yielding significant results, with farmers fetching higher prices for their produce this year.
The Deputy President also assured Kenyans that the country is on track to meet the European Union Deforestation Regulations (EUDR) ahead of the December 30, 2024 deadline.
Speaking on Wednesday during the official opening of the Nairobi International Trade Fair 2024 at Jamhuri Park, Nairobi, Gachagua noted that coffee prices at the Nairobi Coffee Exchange have increased due to comprehensive reforms he has been leading since 2023.
“Reforms at the Nairobi Coffee Exchange are showing results, with 47 auctions held since August 2023. The average price per 50kg bag has risen to USD 237, up from USD 188 before the reforms,” Gachagua stated.
He emphasized that the changes were part of a broader mandate from President William Ruto to revitalize the coffee industry.
Gachagua also highlighted that 15 Farmer Co-operative Unions Brokers, also known as Grower Brokers, are now delivering their coffee directly for sale at the Nairobi Coffee Exchange, compared to only one broker before the reforms.
In addition, he reiterated the government’s commitment to supporting the Coffee Cherry Advance Fund, managed by the New Kenya Planters Cooperative Union (KPCU). The government has allocated KSh 3 billion for the Coffee Cherry Revolving Fund in the 2024/25 financial year.
“We have also been leveraging commercial diplomacy to expand and sustain our coffee export markets through our foreign missions,” Gachagua added.
On the European Union Deforestation Regulations (EUDR), the Deputy President assured farmers that Kenya is coordinating efforts to meet the compliance deadline.
“My office is leading an inter-ministerial committee to ensure we comply with the EUDR before the December 2024 deadline,” he said.
The DP also addressed the broader agricultural sector, mentioning that nearly 16,000 agro-dealers and over 7,000 stockists across 45 counties (excluding Nairobi and Mombasa) have been registered and geo-referenced.
This move, he said, is aimed at improving the distribution and monitoring of farm inputs.
In the dairy and maize sub-sectors, the Deputy President said farmers were also benefiting from government initiatives.
“The guaranteed minimum price for milk has been increased by 35%, from KSh 37 in 2022 to KSh 50 per liter in 2024 under New KCC. Additionally, increased maize production has led to a drop in the cost of a 2kg packet of maize flour from KSh 169 to KSh 130,” he stated.
